Contributing PSS members under age 60 can apply for Additional Death and Invalidity cover, known as ADIC.

Contributing PSS members under age 60 can apply for Additional Death and Invalidity cover, known as ADIC.

ADIC provides additional cover on death and total permanent disablement where an employee can’t achieve the maximum coverage available through PSS. This effectively ‘fills the gap’ between their current projected Benefit Multiple to age 60 and the maximum amount payable from PSS―think of it like purchasing additional Accrued Benefit Multiple (ABM) that can only be used in the event of death or invalidity retirement. ADIC is offered through group insurance with our insurer AIA Australia.

  • If an employee retires due to invalidity, ADIC will make up a portion of their overall indexed pension.
  • If invalidity retirement is due to a terminal illness, an employee can choose to receive the payment as a lump sum amount.
  • If an employee dies, an eligible spouse can take the benefit as either a lump sum or an indexed pension.
  • If an employee dies without dependants, the benefit is paid to their estate as a lump sum.

This information doesn’t apply for PSS casual members. If you have a casual employee who is a member of PSS and wants to know more about ADIC, contact us. 

How does an employee apply for ADIC?

Contributing PSS members can get a quote and apply for ADIC by: 
  • using the LIFEapp online application tool available through PSS member services online 
  • calling us on 1300 000 377
  • completing an additional death and invalidity cover variation form available from

Please note, it’s helpful if your employee knows their ABM before getting a quote or applying for cover. They can find their ABM on their most recent annual statement, from PSS member services online or by calling us. 

LIFEapp will determine the maximum level of cover your employee may be eligible for. Once we receive their application, we’ll confirm the maximum allowable ADIC amount to make sure your employee won’t exceed their Maximum Benefit Limit (MBL) if a death or invalidity benefit is payable. Your employee can choose to apply for less than the maximum ADIC cover. 

Generally, a personal medical statement is part of the application process, and some applicants may also need to have a medical examination or provide medical reports. The insurer will let your employee know if this is required. 

Maximum cover available

The maximum amount of cover available is dependent on the employee’s:
  • age
  • final average superannuation salary using their salary over their last three (3) most recent birthdays
  • present and prospective benefit accruals (to age 60)
  • future salary increases
  • percentage rate changes in contributions

We determine the maximum amount of cover available, based on the age of the employee when they first apply for ADIC. The amount of cover together with their benefit accrual can’t exceed their potential MBL. 

Here’s how we calculate the maximum amount of cover available:

Age of member when cover first taken Maximum amount of cover available
Younger than age 40 2.20 x average salary
Age 40 to age 49 1.65 x average salary
 Age 50 to age 59 1.10 x average salary
 Age 60 or older  Not available

Your employee’s maximum cover multiple doesn’t change unless their ADIC is cancelled and recommenced or if their payment would exceed their MBL. For example, if your employee was approved for ADIC when they were 36 years old their maximum cover multiple remains at 2.20 for as long as they have ADIC, unless this would cause them to exceed their MBL. 

If your employee has had multiple separate periods of ADIC, the maximum cover multiple will be based on their age when their latest period of ADIC commenced. 

Here’s an example of how maximum cover and premiums are calculated: 

Employees average salary is $80,000
Maximum multiple 1.10 x average salary
Amount of cover available $80,000 x 1.10 = $88,000
Premium rate for 50 year old $4.08 per $1,000 cover
Annual premium

$4.08 x 88 = $359.04

(88 = $88,000 / $1,000)

Fortnightly premium $13.81 ($359.04 / 26)
Employees' share of premium $6.90 per fortnight
Employers share of premium $6.90 per fortnight

How are ADIC premiums paid

ADIC premiums are generally paid through your fortnightly pay file, along with member contributions and EPSC payments. 

If our insurer (AIA Australia) determines that your employee is of good health and doesn’t engage in ‘hazardous pursuits’ (in other words they’re considered a ‘standard risk’), your employee will pay half (50%) of the standard premium and you’ll pay the other half (50%). 

If the insurer assesses your employee as a ‘non-standard risk’, your employee will pay half of the standard premium, plus any additional premiums applied – known as loadings. You, as the employer, will still only pay half of the standard premium.

ADIC premiums are based on your employee’s age in years and the amount of cover they’re eligible for. You don’t need to calculate the amount to pay though – we’ll let you know your employee’s premium amount when they’re first approved for ADIC, on each birthday, or if the premium rates otherwise change.

As the employer, your share of the premium counts towards your employee’s concessional contributions cap. The employees share of the premium counts towards their non-concessional cap. 

Find examples and more about premiums in the death and invalidity benefits section of the Product Disclosure Statement, available at

ADIC annual benefit and premium reviews

ADIC takes into consideration salary increases and percentage changes in contributions, so the cover amount may change after each birthday when a salary review is completed. This may also change the premium amount.

An employee’s cover amount and premiums will change when their final average salary changes (their ‘FAS’ is the average of their last three super salaries). We’ll let you and your employee know the new cover amount and premiums. It’s important you adjust the premium payments as soon as possible after a change to avoid premium arrears or cancellation of your employee’s cover. 

More information can be found in the death and invalidity benefits section of the Product Disclosure Statement available at

ADIC while on leave without pay (LWOP)

If your employee is on a period of miscellaneous LWOP of 12 weeks or less, a period of sick leave without pay, a period of compensation leave or another excluded period of LWOP, the arrangements will continue as normal – that is, you’ll continue to pay half of the standard premium and the employee will pay the remainder. 

If ADIC continues during a period of miscellaneous LWOP longer than 12 weeks, your employee is normally responsible for paying the full rate of premiums. As their employer, you don’t pay anything until your employee returns from LWOP.

If your employee wants their ADIC to continue during a period of LWOP that is longer than 24 months, they must complete a SE8 form, and our insurer needs to approve their application. If your employee doesn’t complete the application for cover whilst on LWOP, the insurer may cease their cover. If they later wish to restart their ADIC they’ll need to reapply .This may result in them having a lower maximum cover multiple or the insurer applying exclusions or loadings they may not have had before.

What happens to ADIC when an employee leaves employment?

If your employee has ADIC and is moving to another eligible employer, their ADIC will transfer with them – you need to inform the new employer of the ADIC and premium amount. The new employer will be responsible for paying the employer share of the premiums from the first payday after the transfer.
If your employee has ADIC, is leaving eligible employment for PSS and is under age 60, they can apply for a continuation of cover. 

We’ll write to your employee and let them know they have 60 days from the date they cease employment to apply for continuation of their current level of cover directly with the insurer if they wish. 

The continuation of cover may be subject to premium changes and a health declaration. If the insurer approves the continuation of cover, new policy terms and conditions will apply. Your employee will be fully responsible to pay premiums directly to the insurer. 

Where can I get more information?

For more information about ADIC, please contact the Employer Service Desk on 1300 338 240 or at

Your employees should refer to the insurance and cover page on our website, or the death and invalidity benefits section of the Product Disclosure Statement, available at 

They can also contact us on 1300 000 377 or at


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